ZTE pays $1.4 billion penalty; U.S. to lift ban

ZTE Corp. paid a $1 billion lump sum and put $400 million in escrow to pay a U.S. sanctions penalty. File Photo courtesy of EPA-EFE

July 14 (UPI) — The U.S. Commerce Department lifted a ban on Chinese smartphone maker ZTE on Friday after it paid a $1.4 billion penalty levied by the U.S. government.

The company paid $1 billion of the penalty and put $400 million in escrow at a U.S. bank to satisfy the requirement, the department said.

In exchange, the United States will lift its order for U.S. firms to stop doing business with ZTE. U.S. officials said the company violated U.S. sanctions  against exporting to Iran and North Korea.

The sanctions influenced ZTE’s decision recently to cease operations, and eliminate its entire board and appoint a new chairman.

President Donald Trump‘s administration previously attempted to lift the sanctions, but the U.S. Senate scuttled that effort in June.


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